What is unbilled revenue

Question

Accepted Answer

Unbilled revenue refers to the revenue that has been earned but not yet invoiced to the customer.

It represents the amount of revenue that is recognized in the financial statements but has not been billed to the customer.
Unbilled revenue is typically found in industries where services are provided over a period of time, such as consulting or software subscriptions.
For example, a software company may recognize revenue for a one-year subscription upfront but bill the customer on a monthly basis.
Unbilled revenue is recorded as a liability on the balance sheet until it is invoiced and becomes accounts receivable.
It is important for companies to closely monitor unbilled revenue to ensure timely invoicing and cash flow management.

Accepted Answer

applying customer billing rates to the estimated volumes of energy delivered but not yet billed.

Popular interview questions of Senior Accounts Executive